USD/MXN Price Analysis: Dollar at three-month highs, testing 20.50
|- USD/MXN rises further to the 20.50 key area.
- Greenback strengthens across the board on Wednesday.
The combination of a stronger US dollar across the board and a somewhat weaker Mexican peso boosted the USD/MXN further to the upside. It is rising for the fifth consecutive day, trading at the highest level since mid-June.
The pair is consolidating above 20.40, reinforcing the bullish outlook. The next resistance stands at the 20.50/55 barrier and above the target might be located at the June top at 20.75.
Despite the extreme overbought reading in the short-term, no signs of a reversal or consolidation are seen yet and the strength of the US dollar still appears to have legs.
A daily close below 20.40 could point to some difficulties extending the move higher, but only a decline back under 20.15 should alleviate the bullish tone. If a correction brings USD/MXN below 20.00, the short-term outlook would favor the Mexican peso.
USD/MXN daily chart
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